QUESTIONS (20 MARKS) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTIONS. REQUIRED Use the information provided bebw to answer the following questions: 5.1 Calculate the Payback Period of Machine A (expressed in years, months and days.) ( 3 marks) 52 Calculale the Acoounting Rate of Retum on average investment of Machine A (expressed to two decimal places). (4 marks) 5.3 Calculate the Not Present Value (NPV) of both machines. (6 marks) 5.4 Based on the Net Present Value, which machine should Aspen Limited purchase? Why? ( 1 mark) 5.5 Calculate the Intarnal Rate of Retum (IRR) of Machine B (expressed to two decimal places). Your answer must include two net present value calculations (using consecufve rates/percentages) and interpolation. ( 6 marks) DFORMATION Aspen Limitod intends purchasing a new machine and has the option of purchasing Machine A or Machine B. The folowing details apply. Ignore taxes. QUESTIONS (20 MARKS) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTIONS. REQUIRED Use the information provided bebw to answer the following questions: 5.1 Calculate the Payback Period of Machine A (expressed in years, months and days.) ( 3 marks) 52 Calculale the Acoounting Rate of Retum on average investment of Machine A (expressed to two decimal places). (4 marks) 5.3 Calculate the Not Present Value (NPV) of both machines. (6 marks) 5.4 Based on the Net Present Value, which machine should Aspen Limited purchase? Why? ( 1 mark) 5.5 Calculate the Intarnal Rate of Retum (IRR) of Machine B (expressed to two decimal places). Your answer must include two net present value calculations (using consecufve rates/percentages) and interpolation. ( 6 marks) DFORMATION Aspen Limitod intends purchasing a new machine and has the option of purchasing Machine A or Machine B. The folowing details apply. Ignore taxes